KYC Norms

Reserve Bank of India has advised banks to make the Know Your Customer (KYC) procedures mandatory while opening and operating the accounts. This is in the interest of customers to keep safe their hard earned money and their reputation.

At the time of opening an account Bank has to ensure that the prospective customer is the person who he/she claims to be. This is to prevent fraudsters using the name address and forged signature of others for doing fraudulent transactions; benami transactions; en-cashment of stolen cheques, drafts dividend warrants etc. For this purpose, the customer has to submit the following documents / details according to his/her profile:

- Licence issued by the Registering authority like Certificate of Practice issued by Institute of Chartered Accountants of India, Institute of Cost Accountants of India, Institute of Company Secretaries of India, Indian Medical Council, Food and Drug Control Authorities, registration/licensing document issued in the name of the proprietary concern by the Central Government or State Government Authority/ Department, etc. Banks may also accept IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT as an identity document for opening of the bank account etc.

- The complete Income Tax return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflected, duly authenticated/ acknowledged by the Income Tax Authorities.

- Utility bills such as electricity, water, and landline telephone bills in the name of the proprietary concern.

For trusts and foundations

Registration certificate*

Trust deed

An officially valid document in respect of the person holding a power of attorney to transact on its behalf.

For Unincorporated association or body of individuals

Resolution of the managing body of such association or body of individuals

Power of attorney granted to him to transact on its behalf

An officially valid document in respect of the person holding an attorney to transact on its behalf

Such information as may be required by the bank to collectively establish the legal existence of such an association or body of individuals.

* Includes constitution & tax certificates

Customer profile

Bank requires more details about the customer like social/financial status, nature of business activity, information about his clients' business and their location, the purpose and reason for opening the account, the expected origin of the funds to be used within the relationship and details of occupation/employment, sources of wealth or income, expected monthly remittance, expected monthly withdrawals etc. When the transactions in the account are observed not consistent with the profile, bank may ask for any additional details / documents as required. This is just to confirm that the account is not being used for any Ant-Money Laundering activities

Periodical updating

As per RBI guidelines KYC review has to be conducted periodically based on the risk category of the customer, and hence we have introduced a system for periodical updating of Identity proof, Address proof, Photograph and Profile. Customers may be required to submit the documents/details as and when called for at frequent intervals. This is in the interest of customers to weed out the chances of frauds happening in the accounts.